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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: BLong who wrote (11354)	11/19/1997 2:23:00 AM
From: Tito L. Nisperos Jr.	Respond to of 70976

BLong, yes, if I do not specifically say LEAP Puts what I mean is LEAP Calls because I am Bullish most of the time...I buy LEAPs that are slightly Out The Money like the 35 and 40 (the stock at 35); if the stock goes down to less than 30, I average down my total investment by buying the 30 and 35. This way I can trade the LEAPs short-term if I'm in the mode...Writing a LEAP like the 30 and then using the proceeds to buy the 35 or 40 (selling a fewer number of leaps to buy a greater number of LEAPs) is also a Bullish strategy. Actually, there are so many strategies to employ that the limit is one's imagination...The important thing to remember is not to treat it as a stock that one can hold forever; the value depreciates over time, one needs to sell when the time is ripe...If one thinks the stock has more to go to the downside, one should sell the LEAPs and then buy another later at a lower price...